NEW YORK: JPMorgan Chase plans a big push into online investing offering 100 free trades and low fees in a bid to attract a new generation of investors, a spokesman said on Tuesday (Aug 21).
JPMorgan will launch the "You Invest" programme next week linking it to the mobile phone app of Chase Bank, JPMorgan's retail bank, spokesman Darin Oduyoye said.
Oduyoye said the bank hopes to spark more investing among existing customers, including millennials who may have shied from the stock market.
But JPMorgan also aspires to attract clients from competing firms, he said.
"In the Chase mobile app, you now have the opportunity to do your banking and checking," Oduyoye said. "And now we are offering opportunity to do online trading and investing for free."
The first 100 trades will be commission-free, and after that customers will be charged US$2.95 a trade, which is 60 per cent below the fee of most online brokerage firms, Oduyoye said.
JPMorgan Chief Executive Jamie Dimon has hinted such a programme was in the works, drawing parallels to Amazon's "Prime" service which has significantly broadened the online retailer's relationship with customers, while posing competitive challenges to grocers, television producers and others.
JPMorgan already has some 47 million digital customers which it can reach with the new app.
The prospect of this new disruption to the online brokerage industry, shares of Charles Schwab and TD Ameritrade fell sharply on Tuesday.
Shares of JPMorgan rose 1.5 per cent to US$116.33, while Charles Schwab fell 2.0 per cent and TD Ameritrade slumped 6.1 per cent.